Safeway
confirmed guidance for 2008 (a 53-week year) of $2.25 to $2.35 diluted earnings per share and free cash flow of $500 million to $700 million. Safeway revised guidance for identical-store sales growth, excluding fuel, from a range of 2.0% to 2.3% to
a range of 1.0% to 2.0%.

Safeway confirmed guidance for 2008 (a 53-week year) of $2.25 to $2.35 diluted earnings per share and free cash flow of $500 million to $700 million. Safeway revised
guidance for identical-store sales growth, excluding fuel, from a range of 3.0% to 3.2% to a range of 2.0% to 2.3%.

Safeway confirmed guidance for the 53-week year 2008 of $2.25 to $2.35 diluted earnings per share and free cash flow of $500 million to $700 million. Identical-store
sales, excluding fuel, are expected to grow 3.0% to 3.2%.

Safeway narrowed the earnings guidance range for 2007 to $1.95 to $2.00 per diluted share from the previously provided
range of $1.90 to $2.00. Safeway confirmed 2007 annual guidance for both non-fuel, identical-store sales growth of 3.6% to 3.8% and free cash flow of $400 million to $600 million.

Safeway confirmed guidance for 2007 of $1.90 to $2.00 earnings per diluted share and $400 million to $600 million of free cash flow. The company now expects non-fuel identical-store sales to grow 3.6% to 3.8% for the year.

Safeway confirms guidance for 2007 of $1.90 to $2.00 diluted earnings per share and free cash flow of $400 million to $600 million. Identical-store sales, excluding fuel,
are expected to grow approximately 3.3%.

Safeway is comfortable with the 2006 consensus earnings estimate of $1.72 per diluted share. The company reconfirms free cash flow guidance in the
range of $400 million to $600 million. The earnings and cash flow guidance include any employee buyouts but exclude the impact of the favorable tax settlement. The company is adjusting guidance for non-fuel identical-store sales from 3.0% to a range
of 3.1% to 3.3% for the year.

Safeway is increasing earnings guidance for 2006 to a range of $1.65 to $1.75 per diluted share (excluding the $0.13 per diluted share impact of
the favorable tax settlement) from $1.55 to $1.65 per diluted share. The company now expects that compared to 2005, its 2006 non-fuel gross profit margin will be flat to improving by 10 basis points and that non-fuel operating and administrative
expense as a percentage of sales will improve by 30 to 40 basis points. The company is also reconfirming free cash flow guidance in the range of $400 million to $600 million. The earnings and cash flow guidance includes any employee buyouts but
excludes the impact of the favorable tax settlement. The company continues to expect non-fuel identical-store sales to grow approximately 3% for the year.

Safeway confirmed
guidance for 2006 of $1.55 to $1.65 earnings per diluted share and $400 million to $600 million of free cash flow, both including any employee buyouts but excluding the impact of the recently announced favorable tax settlement. The company continues
to expect non-fuel identical-store sales to grow 3% for the year.

Safeway confirms guidance for 2006 of $1.55 to $1.65 earnings per diluted share and free cash flow of $400 million to $600 million, both excluding employee buyouts.
Non-fuel identical store sales are expected to grow 3.0%. The timing of holidays is expected to affect the quarterly pattern of sales and earnings in the first half of 2006. Shopping for the Easter holiday occurred in the first quarter of the 2005,
but will occur in the second quarter of 2006.

Safeway expects 2005 identical store sales (excluding fuel and excluding Vons for the first quarter of 2005) to be at the top end of the previously provided range of 2.5% to 2.8%. The company is comfortable with
current analyst consensus earnings estimates of $1.44 per diluted share for 2005 (excluding any voluntary employee buyouts and the closure of Texas stores) as posted by Thomson First Call.

Free cash flow is expected to be in the $500 million to $600 million range (excluding any
voluntary employee buyouts and the closure of Texas stores) for the year.

Safeway is raising guidance for 2005
identical store sales (excluding fuel) to a range of 2.5% to 2.8% from the previously provided range of 1.2% to 1.5%. The company is comfortable with current analyst consensus earnings estimates of $1.45 per diluted share for 2005 (excluding any
voluntary employee buyouts) as posted by Thomson First Call.

As a result of
the $100 million increase in forecasted capital spending in the second half of 2005, the companys expected free cash flow is being narrowed to a range of $500 million to $600 million for the year.

Safeway confirms its 2005 guidance for
identical store sales (excluding fuel and excluding the impact of the strike in the first quarter) of 1.2% to 1.5%, and diluted earnings per share of $1.41 to $1.51.

First quarter earnings exceeded First Call consensus estimates by $0.04 per diluted share. Safeway believes about half that outperformance
was due to Easter sales and operating profits that were recorded in the first quarter, but were reflected in second quarter analyst consensus estimates. In addition, as a result of the timing of expected investments in marketing and branding, the
company expects diluted earnings per share in the second quarter to be similar to the first quarter. The company expects diluted earnings per share to improve in the third quarter, as returns are realized from implementation of the companys
strategic plan, which includes Lifestyle store investments.

Free cash flow is
expected to be in the range of $500 million to $700 million in 2005. Free cash flow in the first quarter of 2005 was in line with Safeways expectations.

Safeway confirms 2005 guidance of $1.41 to $1.51 per diluted share which includes an estimated stock option expense of $0.09 per diluted share. In addition, the company expects to generate free cash flow of $500
million to $700 million in 2005 compared to $1,156.1 million in 2004. Free cash flow will be less in 2005 compared to 2004 because of reduced working capital improvements and increased capital expenditures.